Toncoin (TON) Investors Sitting On 54% Profit Despite Price Plunge
On-chain data shows the Toncoin investors are holding a significant amount of unrealized profit even after the recent bearish action in the asset’s price. Toncoin Is Still Trading A Notable Distance Above Its Realized Price In a new post on X, the on-chain analytics firm Glassnode has discussed about the latest trend in a few indicators related to Toncoin. The first metric of relevance is the “Realized Price,” which tells us, in short, the cost basis of the average investor on the TON network. When the spot price of the cryptocurrency is trading above this indicator, it means the holders as a whole can be assumed to be carrying a net amount of unrealized profit. On the other hand, it being under the metric implies the dominance of loss in the market. Now, here is the chart shared by the analytics firm, that shows the trend in the Toncoin Realized Price over the last few years: Looks like the value of the metric has been trading sideways for a while now | Source: Glassnode on XAs displayed in the above graph, the Toncoin price has been above the Realized Price for a while now, which means the investors on the whole have been enjoying gains. This arrangement hasn’t changed even after the drawdown that the coin has witnessed recently. Historically, the Realized Price has acted as a support level for the asset. The reason behind this is the fact that investors can be likely to react to dips to their cost basis by buying more, if the mood in the market is bullish. At present, the metric has a value of $2.43, which is significantly under the spot price. Based on the historical pattern, Glassnode notes that the level “remains a crucial level for potential buying pressure.” The next indicator shared by the analytics firm is the Market Value to Realized Value (MVRV) Ratio. This metric keeps track of the ratio between the spot price and Realized Price of Toncoin. Looks like the value of the metric has been going down in recent days | Source: Glassnode on XFrom the chart, it’s apparent that the ratio has gone down recently and has reached a value of around 1.54. “This means that, on average, investors are sitting at ~54% unrealized profit,” explains Glassnode. While the overall market has been able to withstand the recent downturn, it doesn’t mean that there has been no panic loss selling at all for Toncoin. As the below chart for the Realized Loss shows, the buyers who got in during the top ended up realizing a massive amount of loss in the price plunge. The value of the indicator seems to have spiked recently | Source: Glassnode on XTON Price At the time of writing, Toncoin is trading around $3.77, up almost 3% in the last 24 hours. The price of the coin appears to have been following a bearish trajectory for a while now | Source: TONUSDT on TradingViewFeatured image from Dall-E, Glassnode.com, chart from TradingView.com Keshav Verma Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021. Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to. In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions. Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true. Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment.. Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form. Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new. As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money. Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs. Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.